Pricing formulas?

[John Grace]

I'm attending my annual art fair show this Saturday. In years past I've seen other turners use a formula of sorts to determine pricing: something like width x height x [something]. Does anyone have a starting point they can share with me? Much appreciated...john

 

[Dean Center]

I'm attending my annual art fair show this Saturday. In years past I've seen other turners use a formula of sorts to determine pricing: something like width x height x [something]. Does anyone have a starting point they can share with me? Much appreciated...john

If you do a search, you can find a few threads on this very question from 3-5 years ago. An instant answer!

 

[Richard Coers]

I am no fan of using other people’s formulas. Selling in Chicago or New York City is far different than in Peoria, IL. It takes one out of thousands to find a person that will spend $300 on a bowl in Peoria!

 

[John Grace]

I am no fan of using other people’s formulas. Selling in Chicago or New York City is far different than in Peoria, IL. It takes one out of thousands to find a person that will spend $300 on a bowl in Peoria!

Couldn't agree more. I sell at my local Farmer's Market with a mostly middle to lower upper class customer base. Most of whom prefer a utilitarian piece that they can actually use. I've always priced my pieces conservatively but also want to pay attention to ROI. A formula of width by depth by 2.2 is giving me a number at the high end of what I'm used to selling for.

 

[Holmes Anderson]

width x height x [something] is a good starting point with the "something" being a weighting factor from about 2 to 5 for geography, cost (if any) of wood, quality of work, and sales channel. That's a wide range but it's easy to calculate the "something" that other turners in your local area are using for the same channel. 2 is a very low multiplier for something made with purchased wood and sold wholesale or on consignment. The gallery owner will probably tell you to bump up the price.

 

[John Grace]

width x height x [something] is a good starting point with the "something" being a weighting factor from about 2 to 5 for geography, cost (if any) of wood, quality of work, and sales channel. That's a wide range but it's easy to calculate the "something" that other turners in your local area are using for the same channel. 2 is a very low multiplier for something made with purchased wood and sold wholesale or on consignment. The gallery owner will probably tell you to bump up the price.

Thanks...I now have to solve for 'X' and I'll be all set, John.

 

[Rob Gabel]

Thanks...I now have to solve for 'X' and I'll be all set, John.

Who said Algebra wound never be used after school?

 

[Webb Willmott]

Who said Algebra wound never be used after school?

I gotta ask Y?

 

[Doug Rasmussen]

First off, selling something you've made can be one of the greatest ego boosters ever.

But, a pricing formula? HUH? Are you selling for the ego boost or the income?

If selling for reasonable income for your effort that's easy.
Shop rate*hours + profit margin + cost of materials including maybe a 20% markup on material cost = selling price.

If the calculated selling price is out of range for your market go elsewhere or improve your efficiency to lower your shop hours. Another option if you can't make enough at your chosen profession is to teach.

It's about that simple.

 

[robo hippy]

Well, it is another "art" that you need to learn. I have pieces from $5 up to about $200. All of my pieces are intended to be used daily. There is no exact formula. I would say that I sell as many big bowls dollar wise as I do smaller pieces. The marked for big pieces, and to me that is over 14 inches is limited. I never did well at the fancy shows in part because I don't do fancy like carving or painting or texturing. I used to make furniture for sale, solid wood, and people would expect Ikea prices for solid wood furniture. I am a terrible salesman though.

robo hippy

 

[John Grace]

First off, selling something you've made can be one of the greatest ego boosters ever.

But, a pricing formula? HUH? Are you selling for the ego boost or the income?

If selling for reasonable income for your effort that's easy.
Shop rate*hours + profit margin + cost of materials including maybe a 20% markup on material cost = selling price.

If the calculated selling price is out of range for your market go elsewhere or improve your efficiency to lower your shop hours. Another option if you can't make enough at your chosen profession is to teach.

It's about that simple.

Neither...I don't sell for ego or income. Turning is my hobby and after a while four or five dozen of bowls takes up too much space and the wife and extended family don't need any more gifts. Though I like to think my pieces are nice, or so my customers tell me so, I sell simply to move pieces along. I haven't settled on the final number as of yet but I think I'll go with something like diameter x height x 1.5. I struggle between what the market here will bear, that my customers are strongly inclined to functional pieces, and honestly...I'd rather simply move pieces along at cost rather than bringing a bunch home.

 

[Richard Coers]

Well, it is another "art" that you need to learn. I have pieces from $5 up to about $200. All of my pieces are intended to be used daily. There is no exact formula. I would say that I sell as many big bowls dollar wise as I do smaller pieces. The marked for big pieces, and to me that is over 14 inches is limited. I never did well at the fancy shows in part because I don't do fancy like carving or painting or texturing. I used to make furniture for sale, solid wood, and people would expect Ikea prices for solid wood furniture. I am a terrible salesman though.

robo hippy

The word art gets used way too much, and there is nothing artistic about accounting.